A cost minimizing firm has an output function of the form y=2K^(.5) L^.(5)
K and L are quantity of physical capital and labor employed respectively.
Rental rate of capital R = $100
Wage of Labor W= $50
If this cost minimizing firm employs 50 units of capital (k=50), how many workers does this firm employ?© BrainMass Inc. brainmass.com June 4, 2020, 1:15 am ad1c9bdddf
Marginal Product of capital=MPK=dy/dK=2*0.5*K^(-0.5)L^0.5= K^(-0.5)L^0.5
Marginal Product of ...
The solution describes the steps to calculate optimal number of workers in the given case.